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From Growth-Based to People-Centered: How Chinese Leaders Have Modified Their Governing Strategies to Sustain Legitimacy in the Reform Era

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From Growth-Based to People-Centered: How Chinese Leaders Have Modified Their Governing Strategies to Sustain Legitimacy in the Reform Era Copyright by Wenjie Zhang 2013 The Dissertation Committee for Wenjie Zhang Certifies that this is the approved version of the following dissertation: FROM GROWTH-BASED TO PEOPLE-CENTERED: HOW CHINESE LEADERS HAVE MODIFIED THEIR GOVERNING STRATEGIES TO SUSTAIN LEGITIMACY IN THE REFORM ERA Committee: James K. Galbraith, Supervisor Francis J. Gavin Catherine E. Weaver Bryan R. Roberts William Hurst FROM GROWTH-BASED TO PEOPLE-CENTERED: HOW CHINESE LEADERS HAVE MODIFIED THEIR GOVERNING STRATEGIES TO SUSTAIN LEGITIMACY IN THE REFORM ERA by Wenjie Zhang, B.A.; B. Eco.; M.A.; M.S. Stat. Dissertation Presented to the Faculty of the Graduate School of The University of Texas at Austin in Partial Fulfillment of the Requirements for the Degree of DOCTOR OF PHILOSOPHY The University of Texas at Austin December 2013 Dedication To my parents Zhang Xingquan and Zheng Peng, my daughter Jane Hu and my husband Hu Yue who have been there for me for the last seven years with all their love, support and patience. Acknowledgements First, I would like to express my deepest appreciation and gratitude to my advisor, Dr. James K. Galbraith, for his academic supervision, patient guidance, endless encouragement and generous financial support during my doctoral studies. This dissertation would not have been finished without his enduring support. I am always inspired by Dr. Galbraith’s enthusiasm in teaching and researching, his devotion to students, his hard work and most importantly, his persistent efforts to improve our community. It was Dr. Galbraith that brought me to UT and led me to the field of inequality studies; it was Dr. Galbraith that helped me publish my first article and receive my first research grant. I am extremely grateful to have him being my supervisor, my mentor and my friend for life. I’d also like to thank other members of my committee – Dr. Weaver, Dr. Gavin, Dr. Roberts and Dr. Hurst – for their contributions to this dissertation. I specially thank Dr. Hurst for such valuable comments and detailed suggestions for improving this dissertation. In addition, the completion of this dissertation would not have been possible without discussion with Dr. James Scott and Dr. Margaret Mayer. Thanks for their expertise in statistics, their comments, time and resources. I also want to express my gratitude to Dr. Peter Ward. Without his help and advice, I wouldn’t be able to complete this program successfully. Finally, I would like to thank my Ph.D. cohort – Dr. Fred Beach, Dr. Angela Newell, Dr. Tanvi Madan, Dr. Cesar Martinez and Doctor-to-be Stephen Palmer – for all their support, love, solidarity, and friendship during this long journey. v FROM GROWTH-BASED TO PEOPLE-CENTERED: HOW CHINESE LEADERS HAVE MODIFIED THEIR GOVERNING STRATEGIES TO SUSTAIN LEGITIMACY IN THE REFORM ERA Wenjie Zhang, Ph.D. The University of Texas at Austin, 2013 Supervisor: James K. Galbraith This dissertation analyzes changes in the ruling strategies of the Chinese Communist Party (CCP) in the context of economic reforms, beginning in 1978. By employing both quantitative and qualitative methods, this dissertation investigates how Chinese leaders have utilized legitimation strategies, while modifying their governing strategies, in order to a) solidify the population, b) consolidate ruling authority and c) maintain political and social stability. Specifically, this dissertation looks at how Chinese policymakers have developed effective public policies in response to rapidly rising wage inequality, one of the most pressing problems undermining the CCP’s ruling authority. By providing an original estimate of China’s wage inequality and analyzing the government’s response to it, this dissertation provides a unique look at how the CCP has transformed government functions from growth-based to people-centered to meet various social, political and economic challenges. A comparative statistical analysis helps illustrate the philosophical roots and sources of the CCP’s political legitimacy. The technique of Theil Statistics is applied to measure China’s wage inequality during the reform period. A multivariate hierarchical vi regression analysis is employed to measure the impact of rising inequality on Chinese society. Two models on social welfare system reform are studied in order to understand Hu Jintao and Wen Jiabao’s people-centered governing philosophy and the rationale for constructing a service-oriented government. vii Table of Contents List of Tables ......................................................................................................... xi List of Figures ...................................................................................................... xiii Glossary .................................................................................................................xv Chapter 1: Introduction ............................................................................................1 Introduction .....................................................................................................1 Objectives .......................................................................................................4 Research Questions .........................................................................................5 Methodologies and Data .................................................................................8 Dissertation Contributions ............................................................................12 Dissertation Structure....................................................................................13 References.....................................................................................................15 Chapter 2: The western perspective: A revisiting of political legitimacy .............16 The philosophical explanations of legitimacy ..............................................16 The conundrum about political legitimacy of communist regimes ..............23 An overview of the CCP’s political legitimacy from a western perspective 28 References.....................................................................................................41 Chapter 3: The Chinese perspective: A revisiting of the CCP’s political legitimacy47 Introduction ...................................................................................................47 A descriptive analysis of China’s current literature on legitimacy issues ....49 Overview: historical background and development trend ...................49 The main characteristics of the legitimacy debate in China’s intellectual circles ..........................................................................................54 A comparative statistical analysis of the legitimacy debate in China’s intellectual circle ..................................................................................64 Method Comparison.............................................................................64 Data set.................................................................................................67 Results ..................................................................................................69 viii References..............................................................................................83 Chapter 4: Inequality and Instability......................................................................88 Introduction ...................................................................................................88 The main threats to the CCP’s ruling legitimacy during the transitional period ..............................................................................................................89 Stage 1: Market awakening (1978-1992) .............................................90 Stage 2: Market Prosperity (1992-2002)..............................................92 Stage 3: Market adjustment (2003-the present) ...................................95 A snapshot of China’s wage inequality during the transitional period .........96 Methodology and data source ............................................................100 The evolution of China’s wage inequality from 1987 to 2012 ..........104 The impacts of rising wage inequality on Chinese society and the responses of Chinese policymakers ..........................................134 References .........................................................................................147 Chapter 5: Decoding the ruling mechanism of the CCP ......................................152 Introduction .................................................................................................152 The general importance of “Stability” in the CCP’s doctrine and its impact on formulating the CCP’s ruling mechanism..........................................154 Mao Zedong’s era: a distorted era of pseudo stability .......................157 Post-Mao’s era: A relative stable era with unstable factors ...............162 From growth-based to the people-centered – the changing role of the government ........................................................................................169 Disharmony amid rapid growth .........................................................169 The CCP’s solutions ..........................................................................172 Social welfare reform – an example of transforming government’s function .....................................................................................176 The Legitimation strategies under the new Leadership
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